What a 1031 Qualified Intermediary Does
A qualified intermediary (QI), also called an accommodator or exchange facilitator, is a neutral third party required by the IRS to facilitate a 1031 like-kind exchange. The QI holds the proceeds from the sale of the relinquished property (so the investor never touches the funds), prepares exchange documents, and releases funds to purchase the replacement property within the 45-day identification and 180-day closing deadlines.
Key Responsibilities
- Prepare 1031 exchange documentation (Exchange Agreement, Assignment)
- Hold sale proceeds in a qualified escrow or trust account
- Track 45-day identification and 180-day closing deadlines
- Coordinate with buyer, seller, and title company on both sides
- File IRS Form 8824 documentation
- Advise on reverse and improvement exchange structures
When You Need One
Before closing on the sale of the relinquished property. A QI must be engaged prior to the sale — investors cannot take constructive receipt of proceeds and still qualify for 1031 treatment.
Typical Cost
Flat fee per exchange: $800-$1,500 for standard forward exchanges; $4,000-$10,000+ for reverse or improvement exchanges.
How MaxLife Works With Them
MaxLife Development coordinates with top national and Florida-based qualified intermediaries to structure 1031 exchanges for NNN buyers and sellers. We help investors identify replacement properties within the 45-day window.